Agenda item

Executive considered a detailed report which provided the financial outturn position of the Council for the 2021/22 financial year.

The Council had published its draft Statement of Accounts in respect of 2021/22 on 27thMay 2022, in advance of the deadline date which had been extended due to the Covid 19 pandemic to 31st July 2023.  The draft Statement of Accounts 2021/22 was now subject to independent audit from the Council’s external auditors, Mazars.

Until the accounts had been agreed by Mazars, there remained the possibility that they would be subject to amendment.  The statutory date for the final audited accounts had been extended from 31st July to 30th November 2022 but both the finance team and Mazars would be aiming for sign off by 30th September 2022.

The report highlighted the following;

General Fund

During the previous financial year the Council had managed its budget effectively securing a favourable financial outturn.  The Council was able to make contributions of £1.146m to reserves in preparation for future expenditure commitments.  The Transformation Reserve, which was the Council’s main general earmarked reserve, had £4.8m committed against it in 2022/23 and future years, so continued prudence was needed when committing against this reserve.

HRA

The Council was able to make a contribution of £0.234m to the HRA Vehicle, Plant and Equipment Reserve.  The HRA continued to operate within the parameters set by the 30 Year Business Plan and the MTFP.  Officers would be working to ensure that the Business Plan continued to reflect the impact of Government legislation and that the HRA remained sustainable over the 30 year period of the Business Plan.

Capital Programme

The Capital Programme saw good progress on approved schemes during the 2021/22 financial year.  There were, however, a number of schemes which were work in progress and this required that the associated expenditure and funding be carried forward into the 2022/23 financial year.

Capital Financing

Capital expenditure during 2021/22 had been fully financed in line with the approved programme.

Treasury Management

The Council operated in line with its agreed Treasury Management Strategy during the 2021/22 financial year.  This ensured that lending and borrowing arrangements were prudent and sustainable, minimising the risk of financial loss to the Council.  Effective management of these arrangements ensured that interest costs during the year were minimised in order to assist the Council’s revenue position whilst interest receivable rose.

Moved by Councillor Clive Moesby and seconded by Councillor Duncan McGregor

RESOLVED that (1) the outturn position in respect of the 2021/22 financial year be noted,

(2)  the transfers to earmarked reserves of £1.146m and £0.234m as outlined in detail in paragraphs 2.3 and 2.15 of the report respectively, be approved,

(3)  the proposed carry forward of capital budgets detailed in Appendix 4 to the report, totalling £6.488m, be approved.

(Treasurer)

Reasons for Recommendation

As stated above.

Alternative Options and Reasons for Rejection

The financial outturn report for 2021/22 is primarily a factual report which details the outcome of previously approved budgets therefore there are no alternative options that need to be considered.   

The allocation of resources to earmarked reserve accounts has been undertaken in line with the Council’s policy and service delivery framework and in the light of the risks and issues facing the Council over the period of the current MTFP.  If these risks do not materialise or are settled at a lower cost than anticipated then the earmarked reserves will be reassessed and returned to balances where appropriate.